Upcoming Carbon Tax in South Africa

In
2012, the South Africa National Treasury announced the plan to impose a carbon
tax to cut carbon emissions that are blamed for climate change. South Africa is ranked
among the top 20 countries measured by absolute carbon dioxide emissions, with
emissions per capita in the region of 10 metric tons per annum and over 90% of
South Africa's energy produced by burning fossil fuels. The top 40 largest
companies in the country are responsible for 207 million tons of carbon
dioxide, directly emitting 20 percent of South Africa’s carbon output.

The
legislation, originally scheduled to be implemented from January 2015 to 31
December 2019, is now delayed to January 2016. It will levy a carbon tax of R120
(US$11) per ton of CO2, rising then by 10 percent a year until 2020, while
all sectors bar electricity will be able to claim additional relief of at least
10 percent. The South African treasury proposed a 60 percent tax-free
threshold on emissions for all sectors, including electricity, petroleum, iron,
steel and aluminum.

Oracle Environmental Accounting and Reporting (EA&R) supports these needs and guarantees consistency
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drives business value.